Rolls-Royce CEO: Consumer Optimism Fueled Best Year Ever

Torsten Müller-Ötvös, the CEO of Rolls-Royce Motor Cars, is in a celebratory mood. On Jan. 9, his company reported 2018 sales of 4,107 cars. Rolls has never been a volume player, and that number represents its best sales year in a storied 115-year history. North America remains a third of sales, with Canada posting a particularly good year—sales are up 27%—and there’s been 22% growth for the U.S.

The interesting thing here is that the record sales were accomplished without the aid of the new Cullinan SUV, which is very likely to become the company’s biggest-selling model. Only a few Cullinans have so far been delivered. The Wraith and Ghost models accounted for around 40% of deliveries, but Phantom and Dawn also did well.

Müller-Ötvös said a number of factors went into the strong results, and President Donald Trump’s tax cut was one. “But it’s not about how much money people have in their pockets,” he said in an interview with Penta. “It’s about consumer sentiment. And people in North America are optimistic about the economy and unemployment rates. That accounts for growing demand, and 85% of our Cullinan clients are new to the brand.”

Lamborghini predicted that the new Urus SUV would double its sales. Müller-Ötvös is optimistic about the Cullinan, but he isn’t expecting an 8,000-car year in 2019. “I can say the Cullinan will be our biggest-selling model, and that it’s looking very strong. For the third quarter, we have orders locked and cocked into the system, and it will help to generate another record year in 2019. But our cars start at US$300,000 and go to US$1 million with our bespoke creations, so it’s not a volume business. It’s great to see numbers over 4,000, but doubling will not be the case.”

A bespoke Black Badge Dawn. Special editions are doing well for the brand.
Rolls-Royce photo

According to Gerry Spahn, Rolls-Royce spokesman in North America: “If we dramatically reduced our Cullinan price, we could probably knock it out of the park in volume. But that’s not what we’re about. All our cars are made at the Goodwood factory in England, and we don’t have that kind of capacity there. We’re not about growth for its own sake, but about building more valuable cars.”

Rolls-Royce is doing a lot of one-on-one marketing with its vehicles, Müller-Ötvös says, organizing exclusive events with its dealer partners. “They get a chance to see what it means to drive a Cullinan,” he says. Advertising is less of a priority.

A big growth area for Rolls-Royce is the bespoke cars, and Müller-Ötvös is very bullish on them. “It’s about pure imagination,” he says. “Ninety-nine percent of all the cars leaving Goodwood are bespoke in some ways, in their color combinations or perhaps an extra humidor.”

Rolls-Royce employs 2,000 people worldwide, and 100 of them are specifically assigned to the bespoke cars. In 2018, Rolls created the Wraith Luminary, which had its special starry night headliner extending down into the pillars and doors, with shooting stars added. Only 55 were built, and they sold out quickly.

The Adamas, with laboratory-cultured diamonds and a carbon-fiber, hand-milled Spirit of Ecstasy hood ornament, was built in an edition of Wraiths and Dawns—and they all sold, too. Another three cars had a special blue-and-orange paint scheme. “They sold out on the driveway at Pebble Beach,” Spahn says.

He adds that other bespoke special edition Ghosts and Wraiths are coming in 2019. “We’re going to do it on a regular basis,” he says. “The cars become collectible, and special editions are a challenge to our customers, telling them they should use their imaginations with special features and unique colors.”

“We’ve seen some funky color combinations coming out of the Middle East, but we’re not the taste police,” Müller-Ötvös says. “Our task is to build their dream.”

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.